Recent amendments to New Zealand’s Residential Tenancies Act, effective from 30 January 2025, have introduced several key changes.
Reintroduction of ‘no cause’ terminations
Landlords can now end a periodic tenancy without providing a specific reason, given a 90-day notice period.
Adjusted notice periods
- Landlords: A 42-day notice is permissible if the landlord or their family intends to occupy the property, the property is sold with a requirement for vacant possession, or it’s needed for employees or contractors as specified in the tenancy agreement.
- Tenants: Tenants can terminate a periodic tenancy with a 21-day notice.
- Fixed-term tenancies: Previously, fixed-term tenancies required renegotiation at the end of the term. Now these will automatically convert to periodic tenancies unless either party provides notice between 90 and 21 days before the term ends, or both parties agree to an alternative arrangement.
Note on periodic vs. fixed-term tenancies: a periodic tenancy has no fixed end date and continues until either the landlord or tenant provides the required notice to end it. A fixed-term tenancy has a specific start and end date.
Conclusion
These reforms are sensible, as they provide landlords with greater flexibility in managing their properties. By reinstating ‘no cause’ terminations, landlords may feel more confident in offering tenancies to a broader range of applicants, including students or new migrants without established rental histories. In situations where a tenancy isn’t working out, the ability to end agreements with appropriate notice reduces the risk for landlords, potentially leading to a more inclusive rental market.
